LGI Homes (NASDAQ:LGIH) Shares Down 4.2% – Here’s Why

LGI Homes, Inc. (NASDAQ:LGIH)’s share price traded down 4.2% during mid-day trading on Wednesday. The company traded as low as $41.70 and last traded at $42.1090. 61,843 shares were traded during mid-day trading, a decline of 84% from the average daily volume of 398,565 shares. The stock had previously closed at $43.94.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on LGIH shares. Weiss Ratings lowered shares of LGI Homes from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, September 21st. Wall Street Zen raised shares of LGI Homes from a “sell” rating to a “hold” rating in a research note on Sunday, August 16th. Finally, Citigroup restated a “market outperform” rating on shares of LGI Homes in a research report on Tuesday, October 6th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $68.00.

LGI Homes Stock Down 4.0%

The company has a quick ratio of 0.57, a current ratio of 15.63 and a debt-to-equity ratio of 0.71. The company has a 50-day simple moving average of $46.99 and a two-hundred day simple moving average of $50.04. The stock has a market cap of $981.30 million, a P/E ratio of 13.82 and a beta of 1.88.

LGI Homes (NASDAQ:LGIH) last issued its earnings results on Tuesday, November 3rd. The financial services provider reported $1.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.33. LGI Homes had a net margin of 4.05% and a return on equity of 3.75%. The firm had revenue of $444.46 million for the quarter, compared to analysts’ expectations of $438.21 million. During the same quarter last year, the business earned $0.85 earnings per share. The business’s revenue was up 12.1% on a year-over-year basis.

Institutional Investors Weigh In On LGI Homes

Institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC grew its holdings in LGI Homes by 14.7% in the 2nd quarter. GAMMA Investing LLC now owns 2,093 shares of the financial services provider’s stock worth $133,000 after acquiring an additional 269 shares during the last quarter. Hantz Financial Services Inc. raised its stake in shares of LGI Homes by 13.6% during the third quarter. Hantz Financial Services Inc. now owns 2,410 shares of the financial services provider’s stock valued at $112,000 after acquiring an additional 289 shares during the last quarter. Allworth Financial LP raised its stake in shares of LGI Homes by 159.8% during the second quarter. Allworth Financial LP now owns 878 shares of the financial services provider’s stock valued at $56,000 after acquiring an additional 540 shares during the last quarter. Everhart Financial Group Inc. boosted its holdings in shares of LGI Homes by 9.4% during the third quarter. Everhart Financial Group Inc. now owns 7,520 shares of the financial services provider’s stock worth $351,000 after purchasing an additional 648 shares during the period. Finally, Compass Wealth Management LLC purchased a new stake in shares of LGI Homes during the third quarter worth about $33,000. Hedge funds and other institutional investors own 84.89% of the company’s stock.

About LGI Homes

LGI Homes, Inc. is a residential homebuilder headquartered in The Woodlands, Texas. Founded in 2003, the company develops and sells newly built homes, including single-family houses and townhomes, in planned communities. Its homes are marketed to a range of buyers, including first-time buyers and households seeking larger homes. The company operates under the LGI Homes and Terrata Homes brands, offering homes across markets in multiple U.S. states. Its communities feature a variety of home designs and locations, with offerings that vary by market.